Category: Uncategorized
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No deductions for expenses related to holding vacant land
On Budget night in May the Treasurer indicated there would be changes from 1 July 2019 that would deny some deductions for expenses related to holding vacant land. In Exposure Draft – Treasury Laws Amendment (Measures For A Later Sitting) Bill 2018 we finally have an idea of what they are going to stop us claiming…
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Yes, changes to company tax rates again…
But not for a few years… As we have previously discussed here, there are two company tax rates. They are 30%, or if the company has an aggregated turnover under $50m ($25m last year) and has less than 80% of its income from “base rate passive income”, the rate is 27.5%. In the Treasury Laws…
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Everatt assignments and the SBCGT concessions
We now have Exposure Draft legislation that proposes to prevent the small business CGT concessions from being available for assignments of the income of a partner and other rights or interests in the income or capital of a partnership that are not a membership interest in the partnership. Since the 1980 High Court decision in…
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Do your homework when working from home
Last year, 6.7 million taxpayers claimed a record $7.9 billion in deductions for ‘other work-related expenses’ which includes expenses related to working from home. This worries the Commissioner… Technology-driven changes to the employment market are seeing record numbers of Australians claiming deductions for expenses incurred while working from home. But a high level of mistakes,…
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Small Business CGT Concessions Anti Avoidance Measures Bill Passes Parliament
We finally have some long-feared changes to the small business CGT concessions. These are in the Treasury Laws Amendment (Tax Integrity and Other Measures) Bill 2018 and have now passed the Parliament. These changes propose to add additional basic conditions for these concessions to apply, but only where the CGT asset is share in a company…
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Learning from the Solomon Islands – No deductions if no withholding coming to Australia…
I have spent some time working with the Inland Revenue Division of the Solomon Island. Way back in 2005 the Solomon Island Government introduced subsection 20(2A) into their income tax legislation. It states: By 1 July 2019 the Australian tax system will catch up with our neighbours (this is and unfair criticism as the Solomon…
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Lets have a new tax…
For Fathers Day My boys bought me a new electric shaver… All I could think about was tax avoidance… That is because in 1698, the cleanly shaved Emperor of Russia, in a hope to make Russia men look more European, instituted a Beard Tax. If you have a beard you have to pay a tax.…
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Travel and Accommodation Deductions
I have been getting asked a lot of questions about travel and accomodation deductions… They are normally about a contractor or employee who is working away from their home far enough away they can’t just come home each night. They live in Geelong but work in Melbourne, they live in Perth and work in Darwin……
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My favourite 2 Tax Myths
In “Tax myths busted!”, Commissioner of Taxation, www.ato.gov.au, 30 June 2018 The Commissioner has identified the top 10 tax myths and misunderstandings that are those involved in preparing individual tax returns have, including tax agents prepared and self-prepared returns. And generally, they relate to substantiation of work related deductions. MYTH #1: Claim $150 for clothing…
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What is the Company Tax Rate? Last answer I promise…
I don’t feel like a pathetic tax advisor any more. You see, for the past 10 months I have not been able to answer the question “What is the company tax rate?” I know I find the answer in the Tax Rates Act. And I know the Tax Rates Act tells me that: From 1…
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